Do you recommend compensation based on flat salary

Assignment Help Business Management
Reference no: EM13875026

Performance Evaluation and Risk Aversion Heartwood Furniture Corporation has a line of sofas marketed under the name NightTime Sleepers. Heartwood management is considering several com- pensation packages for Amy Johnson, NightTime's general manager. Amy's duties include making all investing and operating decisions for NightTime.

Required

1. Amy is risk-neutral and prefers to receive the maximum reward for her hard work. Do you recommend compensation based on flat salary, an ROI-based bonus, or a combination of both? Why?

2. If Amy does not make investing decisions for NightTime, is ROI still a good performance measure? If so, then explain why. If not, suggest an alternative.

Reference no: EM13875026

Questions Cloud

Would evaluating amy with the benchmark be fair : Would evaluating Amy with this benchmark be fair? Would using residual income instead of ROI offer any advantages for Heartwood?
Analysis of the investment : Review the Anthony's Orchard case study in the unit resources - develop a recommendation for the company, and this analysis will help you to support that recommendation.
Describe a leading second cause : Describe a leading second cause
Is this a valid enforceable contract : Sonny, an inexperienced businessman, bought equipment and chinchillas from Division West Chinchilla in order to start a chinchilla ranch. Is this a valid, enforceable contract
Do you recommend compensation based on flat salary : Amy is risk-neutral and prefers to receive the maximum reward for her hard work. Do you recommend compensation based on flat salary, an ROI-based bonus, or a combination of both? Why?
What, above all else, is worth sustaining : What, above all else, is worth sustaining? In the face of environmental degradation, what aspect of the natural world and/or civilization do you believe should be conserved most urgently?
Review the financial statements : Analyse the current financial state of Anthony's Orchard and evaluate the impact of a major customer cancelling their expected order.
What are some of the causes of challenging behavior : What are some of the causes of challenging behavior in the preschool classroom?
Synopsis of any supreme court opinion : Write a three-page paper that includes a synopsis of ANY Supreme Court's opinion REFERENCE FREE SPEECH and discusses whether you agree or disagree with the Court's ruling

Reviews

Write a Review

Business Management Questions & Answers

  Solicited and unsolicited proposals

Discuss the differences between solicited and unsolicited proposals.

  Overview for new planning team members

A brief description of each of the brands/business units and the products and services offered - Business Overview for New Planning Team Members

  1 to ensure the proficient implementation of strategy in an

1. to ensure the proficient implementation of strategy in an organization top-level executives can best achieve this by

  What percentage of applicants scored below

What percentage of applicants scored below

  Determine the utilization and the efficiency of conditions

Determine the utilization and the efficiency for each of these situations. A loan processing operation that processes an average of 7 loans per day.

  Difference between southwest and delta

Show what is the difference between Southwest, Delta, American and those that have perished: Braniff, TWA, and Pan Am?

  Important information about reverse discriminationwhat is

important information about reverse discriminationwhat is reverse discrimination? please give an example and explain

  What are the potential benefits of each stage

Why an ERP systems journey may never end What are the possible stages in an ERP systems journey? What are the potential benefits of each stage?

  Accommodating employees with disabilities1 explain what are

accommodating employees with disabilities1. explain what are some challenges that employees have who are disabled on a

  Explain product mix and product life cycle

Explain the new product and would you keep that same brand name or use a new one and why

  Reporting practices and ethics paper

Find two or three articles that address financial reporting practices and ethical standards in health care finance, including Generally accepted accounting principles and Corporate compliance, ethics, or fraud and abuse.

  Describing virtual group charter

Suggest a formal "Virtual Group Charter." At a minimum, the charter should contain a group name, specific rules for engagement, norms of expected behavior, and selection of a formal leader.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd